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Overview

China Eximbank provides $135.66 million preferential buyer’s credit for New Enga Provincial Hospital (NEPH) Construction Project

Commitments (Constant USD, 2023)$144,359,385
Commitment Year•2017Country of Activity•Papua New GuineaDirect Recipient Country of Incorporation•Papua New GuineaSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 10, 2017
Start (actual)
Dec 14, 2017
End (planned)
Dec 31, 2020
End (actual)
Jun 20, 2022

Geospatial footprint

Map overview

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The purpose of the project is to construct a 300-bed hospital complex in the town of Wabag within Enga Province. More detailed locational information can be found at https://www.openstreetmap.org/way/793415663

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Papua New Guinea

Implementing agencies

State-owned companies

  • Guangdong Foreign Construction Co., Ltd (GDFC)

Loan description

China Eximbank provides $135.66 million preferential buyer’s credit for New Enga Provincial Hospital (NEPH) Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In January 2015, the Government of Papua New Guinea submitted a loan application to China Eximbank for the New Enga Provincial Hospital (NEPH) Construction Project. The Chinese Embassy in Papua New Guinea confirmed receipt of the loan application in April 2015. On May 10, 2017, China Eximbank and the Government of Papua New Guinea signed a $135.66 million preferential buyer’s credit (PBC) agreement for the New Enga Provincial Hospital (NEPH) Construction Project. The borrowing terms of the PBC are unknown. However, it is known that the proceeds of the loan were to be used by the borrower to finance approximately 85% of the cost of a $159.6 million commercial contract (No. CSTB 3193) with Guangdong Foreign Construction Co. Ltd. (GDFC), which was signed in April 2016. The purpose of the project is to construct a 300-bed hospital complex in the town of Wabag within Enga Province. The complex, which was designed by an American architect, sits on 34 hectares of land and includes 14 hospital buildings (150 beds, 20,500 square meters in total), 25 staff dormitories (10,500 square meters in total), external works, and a sewage treatment plant. On June 16, 2017, a formal groundbreaking ceremony took place. However. construction did not begin until December 14, 2017. The first loan disbursement (drawn down) took place on June 19, 2017. The project was originally expected to reach completion by the end of 2020, but the project had only achieved a 50% completion rate as of June 2020. The Prime Minister of Papua New Guinea conducted an on-site project inspection on January 10, 2020. The project was completed and handed over on June 20, 2022.

Staff comments

1. This project is also known as the Construction of New Enga Provincial Hospital Project. The Chinese project title is 新恩加省医院建设项目. 2. There is a discrepancy between the face value of the loan, as reported by the Government of Papua New Guinea ($162,646,423) and Guangdong Foreign Construction Co. Ltd. ($135.66 million). The value reported by Guangdong Foreign Construction Co. Ltd. is coded, because it was reported in 2018 and the Government of Papua New Guinea value was reported in December 2015 (which appears to have been before the finalization of the loan). 3. This record has been marked as having evidence of financial distress because it was part of the debt restructuring agreement captured in record #95853.